Jennifer Wyatt and Megan Truett formed a partnership, investing $330,000 and $110,000, respectively.
Determine their participation in the year's net income of $420,000 under each of the following independent assumptions:
1.No agreement concerning division of net income.
2.Divided in the ratio of original capital investment.
3.Interest at the rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3.
4.Salary allowances of $50,000 and $70,000, respectively, and the balance divided equally.
5.Allowance of interest at the rate of 8% on original investments, salary allowances of $50,000 and $70,000, respectively, and the remainder divided equally.
Wyatt Truett
(a) $ 210000 $ 210000
(b) $ 315000 $
(c) $ $
(d) $ $
(e) $ $